Roblox Stock Jumps After Top Analyst Upgrade
Hey everyone, have you seen the news about Roblox lately? The company’s stock, RBLX, has been trending higher after a major Wall Street analyst gave it a strong vote of confidence. Shweta Khajuria from Wolfe Research, who’s ranked among the top analysts tracked by TipRanks, upgraded Roblox from a Hold to a Buy, setting a price target of $150. This move sparked a noticeable jump in the stock, which rose about 2% in pre-market trading on Friday.
Khajuria’s optimism comes from several factors. She highlighted that regional pricing strategies and growing advertising opportunities are set to drive significant revenue growth for Roblox. In fact, her estimates for the company’s Fiscal 2026 bookings and EBITDA were raised by 7% and 13%, respectively. She believes that improvements in search, content discovery, and faster content creation on the platform—sometimes referred to as “platform flywheel effects”—will continue to fuel engagement and revenue.
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Another point that Khajuria emphasized is the potential of Roblox’s advertising business. While still in its early stages, ad revenue is expected to contribute meaningfully to the company’s overall growth. Specifically, she projects that regional pricing could add around $318 million in incremental bookings, and ad revenue could bring in about $300 million in additional gross revenue by 2026. That’s a pretty significant boost, and it shows how the company is finding multiple levers to increase its top-line growth.
It’s also worth noting that Khajuria’s Fiscal 2026 estimates are now 9% and 8% higher than the consensus on Wall Street for bookings and EBITDA, respectively. Overall, Roblox has a strong Buy consensus among analysts, with 15 Buy ratings, 2 Holds, and just 1 Sell. The average price target sits around $146.74, which indicates nearly 28% upside from current levels. No wonder the stock has already surged almost 98% year-to-date.
So, what does this mean for investors? Well, the upgrade from a top-rated analyst shows that confidence in Roblox’s long-term growth potential is rising, driven by smart monetization strategies and ongoing platform improvements. While past performance doesn’t guarantee future returns, the bullish outlook has clearly energized the market and put Roblox back in the spotlight as one of the most closely watched growth stocks in the gaming space.
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